Vietnamese enterprises stay firm in face of economic turmoil in Russia

04:48 PM @ Thursday - 23 June, 2022

While a series of sanctions caused the Russian market to wobble at times, Vietnamese textile and garment enterprises have stood firm and continued to earn profits.

All sewing lines are operating steadily, and employees are working enthusiastically at the garment factory of Phan Manh Hung’s Ruviteks company in Moscow Province.

Hung said: “Before the COVID-19 pandemic, my garment factory had more than 100 workers, but now there are about 40 workers. However, production activities are still stable, and workers' income is guaranteed.”

The leader added the company continuously contributed to charity, from making masks to provide to the Russian people during the outbreak of the COVID-19 pandemic in early 2020 to building a house of gratitude in Ben Tre in Viet Nam to support children and helping people in the Donbas region to evacuate to Russia.

Hung said the secret for enterprises to overcome recent difficulties was stabilising production, attaching workers' interests to the enterprise, and providing stable goods to the market. Due to the steady number of customers and product output, Ruviteks was proactive in purchasing raw materials.

Though raw materials for the garment industry in Russia were mostly imported and greatly affected by the current situation, by actively building a 1-year or 18-month production plan before the conflict broke out, the Hung garment factory had stabilised the source of input materials for a long time.

As the garment industry depended on workers, businesses always needed to ensure a minimum income for employees to keep the workers. His company's minimum income was about VND15 million or $700 excluding all expenses, said Hung, adding he always supported employees, especially from 2014 to May 2020, so they could "work with peace of mind."

Also in Moscow Province, at the Sarlanter garment factory of Do Van Tieu there are about 50 workers with a stable income.

Phung Duc Long, who has worked at Sarlanter for nine years, said: “The income here is quite steady. "The salary is about US$1,600 for two months. The company pays the salary every two months and will send it back to Viet Nam. Everyone here lives in solidarity. We treat each other like brothers and sisters in a family."

Owner of the Sarlenter garment company Do Van Tieu revealed that his business had learned from other countries. For example, in Japan "people treat workers in such a way that the factory can be considered home."

Amid the ups and downs in the market in Russia, a close relationship between employers and employees helped Vietnamese garment factories in a hard time.